This is a trend following analysis using a breakout entry formation that generally has the greatest results. This analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs. Basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to execute trades. There’re are several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/ bottom breakout. Even with the two, I only trade double top/ triple bottom breakout most of the times and trend line breakout at some other times. Double top/Triple top/ bottom breakout is more dependable and reliable than the other. Note, trend line breakout includes also breaks that occur out of various shapes such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
Technical observation O the chart above, price is trading with an increasing bullish momentum above a supportive level 1.1755. I expect this upwards movement to continue to the resistance line1.2016 followed by either a clear breakout above it with a big green candle or a rejection at it. My advic
Technical observation GBP is rallying upwards above a supportive zone 1.2781-1.2753 and I expect this upwards movement to continue to the resistance line 1.3290. If you bought this pair within the above-mentioned supportive zone after a bounce, hold on to that position with your take profit at 1.3
Technical observation USD is trading below a supportive line 105.24 with an increasing bearish bias. However, I expect a correction to the line followed by a rejection at it to short USD towards the supportive line 104.29. My advice, remain flat and wait for a correction to the line 105.24 and a r